NICs - Tiger Economies A NIC is a Newly Industrialised Country. This means a country that has a rapidly developing industrial sector. Some NICs are Japan, Thailand, Vietnam and Singapore.
The items mentioned in the next column are very important. They describe how Governments can play a vital role in the development of industry. Particularly Governments of NICs have used a variety of ideas some are mentioned next door.
Government Legislation can encourage the building of factories with loans
They can enforce long working hours to help TNCs
Governments can relax health and safety and environmental regulations to help TNCs build factories
The Governments can ban strikes to help companies
Governments can also offer tax incentives and tax free zones
NICs developed quickly for a number of reasons:
Labour - people were prepared to work for long hours for little pay to begin with so things were produced rapidly
Government - introduced long-term industrial planning and tried to attract industry with financial incentives
Transport - all the countries were close to main shipping lanes. Ships are the cheapest way to transport goods long distances
Markets - goods were produced for a global market. Markets within Asia are increasing as people have more money.
South Korea is a rapidly developing NIC - here are some of the reasons as to why:
Stage 1 - 1960s: South Korea had few natural resources and little technical expertise. Early development focused on manufacturing that needed lots of workers - for example textiles
Stage 2 - 1970s: Investment grew heavy industries like shipbuilding, iron, steel and cars. The government planned to export these aboard.
Stage 3 - 19802-90s: Move to high-tech industries like computers and electronics
NICs - Tiger Economies
A NIC is a Newly Industrialised Country. This means a country that has a rapidly developing industrial sector.
Some NICs are Japan, Thailand, Vietnam and Singapore.
The items mentioned in the next column are very important. They describe how Governments can play a vital role in the development of industry. Particularly Governments of NICs have used a variety of ideas some are mentioned next door.
- Government Legislation can encourage the building of factories with loans
- They can enforce long working hours to help TNCs
- Governments can relax health and safety and environmental regulations to help TNCs build factories
- The Governments can ban strikes to help companies
Governments can also offer tax incentives and tax free zonesNICs developed quickly for a number of reasons:
- Labour - people were prepared to work for long hours for little pay to begin with so things were produced rapidly
- Government - introduced long-term industrial planning and tried to attract industry with financial incentives
- Transport - all the countries were close to main shipping lanes. Ships are the cheapest way to transport goods long distances
Markets - goods were produced for a global market. Markets within Asia are increasing as people have more money.- Stage 1 - 1960s: South Korea had few natural resources and little technical expertise. Early development focused on manufacturing that needed lots of workers - for example textiles
- Stage 2 - 1970s: Investment grew heavy industries like shipbuilding, iron, steel and cars. The government planned to export these aboard.
Stage 3 - 19802-90s: Move to high-tech industries like computers and electronics